Federal Authority to deficit spend

During the Presidential Debate of Oct. 22, 2020:

Biden: “every single state out there finds themselves in trouble. They’re going to start laying off, whether they’re red or blue. Cops, firefighters, first responders, teachers — because they have to balance their budget. And the founders were smart. They allowed the federal government to deficit spend to compensate for the United States of America. “

These are  LIES. Except for the part where States must balance their [sic] budget. And South Dakota is not in trouble because they never shutdown.

Here is the TRUTH.

  • The States created the federal government. They cannot delegate an authority they themselves did not have.
  • Joe has a law degree. He should know that every Law Dictionary tells us: Contra principia negantem non est disputandum. There can be no debate with one who denies fundamentals.
  • Biden characterized the founders as smart for allowing a policy they vehemently opposed.


The ongoing normal, everyday costs of government are to be met by ongoing indirect taxes of Imposts, Duties, and Excises (Article 1, Section 8), But, to keep the budget balanced to meet emergency costs, Congress is to resort to the other method of taxation: Congress is to tax the states by sending an apportioned tax bill to the governors. Article 1, section 2, clause 3 is a direct tax which was intended for emergencies ONLY. You can read about this in the Federalist Papers Nos. 10, 21, 35, 36 and 51 — and in the debates of the 1787 constitutional convention on July 12 and 13. — and in the ratification documents submitted by Rhode Island, New Hampshire, New York, Virginia, South Carolina, Massachusetts, and North Carolina. It was used, as emergency taxation, to extinguish a part of the Revolutionary War debt, it was used during the War of 1812, and it was used by the Union to meet deficiencies during the Civil War. Direct tax was never intended as an everyday tax to meet ongoing expenses.

Thomas Jefferson boasted of his achievement in eliminating direct taxes.

“The remaining revenue on the consumption of foreign articles, is paid cheerfully by those who can afford to add foreign luxuries to domestic comforts, being collected on our seaboards and frontiers only, and incorporated with the transactions of our mercantile citizens, it may be the pleasure and pride of an American to ask, what farmer, what mechanic, what laborer, ever sees a tax-gatherer of the United States? These contributions enable us to support the current expenses of the government, to fulfill contracts with foreign nations, to extinguish the native right of soil within our limits, to extend those limits, and to apply such a surplus to our public debts, as places at a short day their final redemption, and that redemption once effected, the revenue thereby liberated may, by a just repartition among the states, and a corresponding amendment of the constitution, be applied, in time of peace, to rivers, canals, roads, arts, manufactures, education, and other great objects within each state. In time of war, if injustice, by ourselves or others, must sometimes produce war, increased as the same revenue will be increased by population and consumption, and aided by other resources reserved for that crisis, it may meet within the year all the expenses of the year, without encroaching on the rights of future generations, by burdening them with the debts of the past. War will then be but a suspension of useful works, and a return to a state of peace, a return to the progress of improvement.” 

— Thomas Jefferson’s Second Inaugural Address of March 4, 1805

The budget must be balanced — the deficit paid — by the end of the year that the expenditures were made.

But your covetous practices have cursed your children.

“As an individual who undertakes to live by borrowing, soon finds his original means devoured by interest, and next no one left to borrow from, so must it be with a government.”
Abraham Lincoln — campaign circular for Whig Committee, March 4, 1843

Article 1, section 2, clause 3 requires states to pay these emergency direct taxes, NOT people. This is a check-and-balance that was put into the Constitution to make overspending VERY painful to politicians. Constituents would be outraged at their representatives overspending. State political machinery would not tolerate federal depleting of the state treasury. Federal Tax collectors could NOT harass the people, it must deal with the state political machinery. And congressmen would be asked to answer to us why they overspend on our behalf. If the constitution were enforced, it would — via strong political pressure to recall congressmen — require a balanced budget, force congress to limit their spending to constitutional matters, and provide congress with strong political incentives to represent the true interests of their constituents. The federal government would be forced to remain subservient to the citizen creators of government. Which, after all, is the reason why “we the people” authorized government to exist.

And NO, the 16th amendment did not change this, for many reasons.

  • Government exists to protect rights. A right cannot be taxed.
  • The US Supreme Court in Stanton v. Baltic Mining Co., 240 US 103 (1915) determined that “… the 16th amendment conferred no new powers of taxation.
  • No one who had a duty to uphold the constitution could propose to change it, which is why Article 5 only allows “amendments to” but never an “amendment of” the constitution*.
  • The original proposed 16th amendment in Senate Joint Resolution 39 as published in Congressional Record June 11, 1909 page 3377.”The Congress shall have power to lay and collect direct taxes on incomes without apportionment among the several states according to population”
    The Senate Finance Committee then revised it as Senate Joint Resolution 40, to what we have today. (published on Page 3900 of the Congressional Record of June 28, 1909)
    The word “direct” was removed from the original proposed amendment.
    The words “from whatever source derived” were added.
    THEREFORE: It can NEVER be argued that income tax is a DIRECT tax. It can only be an indirect tax on YOUR revenue taxable activities. A right cannot be taxed.

I repeat: the word “direct” was removed from the “direct taxes” that were in the originally proposed 16th Amendment before any State ratified it.  What does this mean to you? It means NO STATE EVER RATIFIED THE 16TH AMENDMENT TO AUTHORIZE UNAPPORTIONED DIRECT TAXES ON PEOPLE.  On August 2, 1909, Alabama was the first state to ratify the 16th Amendment after it was revised with the word “Direct” removed. See NY Times front page article here. It was promoted as a tax on the wealthy — it would only tax bank interest of the wealthy. Bank interest is a government granted privilege, never a right.  See my essay on Usury.

No one can ever claim that the 16th Amendment authorizes an unapportioned direct tax on anyone’s wages (except government employee’s wages).  The words “from whatever source derived” means what it has always meant.  Nothing changed. After a judgment, they can collect what is owed by garnishing wages, seizing assets and bank accounts, or collecting from creditors from whatever source derived, not just the revenue-taxable activity that created the tax liability.

Nothing was changed by the 16th Amendment. The Supreme Court confirmed that there is no new taxing authority. The amendment DID NOT eliminate apportionment, nor convert direct taxes into indirect taxes. Since the word direct was deleted, it can never be argued that it authorized a direct tax that is unapportioned among the States.
There is not now, nor can there ever be an unapportioned direct tax on incomes. (except for federal employees who are already subject to federal jurisdiction — and who’s wages were taxed since 1862 — long before the 16th Amendment).

Senate ratification debates in the Congressional Record, August 28 1913 insisted that the word “income” referred only to earnings on savings accounts.  See my essay on Constitutional Taxation.  (Note that interest on bank savings accounts is a government granted privilege that can be taxed.)

By the way, the Article 1 section 8 power to borrow money was intended to be short term debt to be repaid when the states remit their payments. This was never intended to grant the power to issue debt currency. It remains unconstitutional to “emit Bills of Credit” per Article 1 section 10.

Banks are the enemy of Capitalism.
and don’t miss the Bankruptcy discussion in my essay Liberty and Justice for all who can qualify.

if a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be,”
— Thomas Jefferson, Letter to Colonel Charles Yancey (6 January 1816) 

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Prepare for the future inquisition. Same as the old inquisition.

Everyone can sense the upcoming chaos, inflation, civil war, forced vaccines, food shortages, jail for refusing to comply with intrusive contact tracing, AND the mandatory proof of immunity that eventually becomes permission to buy or sell.

Did you know also, that perilous times shall come? (Second Timothy 3:1) Christians face persecutions, arrest, prison, appear before authorities for Christ name’s sake.  Delivered up to be afflicted.  Delivered up to counsels.  Testify to authorities. (Luke 21:12-15, Matthew 24:9, Mark 13:9,11).

You are completely dependent on those who control the foundations* that you rely on. This is the very definition of Stockholm Syndrome.  Just like the early Christians, and today’s Amish, you will need to join a like-minded community to provide the foundations of your own making, without reliance on “the powers that be.”
* Jobs, food, healthcare, energy, banking, justice, education, travel. All these are controlled by regulations of the Powers That Be to justify their “requirement” for safety. But safety is not our heritage. 

Ben Franklin quote inscribed on a plaque in the stairwell of the Statute of Liberty:

“Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.”

What can be done to delay the injustice? Answer: learn to stand up to government bullies.

  • Freedom is not Free.
  • It requires action and risk. You must stand up to bullies who will take your liberty. Letters to congressmen and public protests alone can never restore the purpose of government — Liberty and Justice for ALL.
  • It was never the the purpose of government to deny freedom to 80% of Americans who cannot afford a lawyer.

I recommend a law course for those who do not trust lawyers. If you have a lawyer — understand what he should be doing so you can control him, and know when to fire him. If you don’t have a lawyer — understand what YOU should be doing. All the basic lawyer procedures are explained in “How To Win In Court” self-help course. This is a step-by-step guide on how to win in court. It has pro se tactics, and forms for civil cases. Learn how to stand up to tyrants (even judges).
An online law course developed by a lawyer. Learn enough legal procedure to win your case. It has helped me. It might be your get out of jail card.
Liberty is what we seek.
•Liberty to run a business.
•Liberty to enjoy life.
•and even Liberty to take our own risks and suffer the consequences.

Sadly, there is no liberty or justice for ALL. The deep-state lawyers have infiltrated all branches of government so that “ALL” do not get Justice in America.
Liberty without Justice is impossible. Justice is a sacred right. Justice should not be a business.
Take the “justice business” away from lawyers once and for all. Open the courthouse doors to EVERYONE.
If you are an unfortunate victim of government overreach, I recommend this online law course. I used what I’ve learned to stop a $60,000 lawsuit by a lawyer — with a “flurry of paperwork” that exposed his lies.

Take a tour of the online law course. While you are there, look up a few legal terms, then explore the Main Menu tab at the left.  Click Here

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Steven D. Miller is a freelance writer producing informative blog posts, white papers, eBooks and high-density documentaries. He is available to offer hope to any audience that yearns to breathe free. Contact him at Steven.Miller@LibertyContentWriter.com

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